News

Prepayment on the proper calculation of liquidated damages

the Chinese have a saying: called "debt-free". Borrowers with the same concept, top of mind with well-off, removing the burden of repayment pressure by prepayment. However, in the eyes of most lenders, prepayment may not be the cause for celebration, and they usually see this as default, charging breach nature can not be avoided. So, how to correctly calculate the prepayment penalty?

in General, the prepayment penalty is calculated according to a certain proportion of the remaining payments. It is worth mentioning that, levy of liquidated damages different agencies standards vary, some for 5%, for 3%, while others are even lower, only 1%. Specific standard, we can in the original contract with lending institutions to find the answers.

if penalty charges are clear, the calculation method is simple enough. For example, indicate the remaining amount of liquidated damages in accordance with the 5% If the contract payment, not have 10,000 yuan payment, subject to liquidated damages for 10000*5%, that evaluates which is 500 Yuan. According to this calculation, you need to prepare in advance how much penalty, believes most people already know of repayment.

Finally, the need to remind you of is that just calculating liquidated damages is not enough, because prepayment is not also, lenders will normally set a number of conditions attached, in other words, the threshold for early repayment also has some industry. Most lenders provide, reaches a certain time period is required in order to meet the eligibility criteria of the prepayment, for 3 months, and some may be up to 1 year, depending on the requirements of lending institutions on the. For example, requires the borrower to repay in advance to make an appointment, some provisions of reservation 1 week in advance, while others are for 1 month only. So, as soon as possible in order to gain time to repay, you might as well hand phone immediately, obtained from the lender's customer service phone, telephone booking prepayment.

BACK